The cost of tarrifs

 CNN -The real world consequences of a heightened tariff rate could be a tremendous strain on the American consumer. The Yale Budget Lab earlier this month estimated that Trump’s tariffs could cost the average household $2,000 in inflation-accounted disposable income a year. 

Prices for computers could rise by over 10%, by 5% for natural gas and even over 4% for something as simple as rice if the tariffs take effect.

 

The average price of a new car could surge to over $50,000.

 

Now, if we were only dealing with tariffs, it would be one thing. Every so often, prices get much more expensive very quickly.

 

The issue is that prices have already gotten much more expensive over the last five years because of heightened inflation. The cumulative inflation rate during that period, according to the Consumer Price Index, has been over 23%.

 

We haven’t had a higher five-year inflation rate in over 30 years. The median five-year inflation rate since the late 1940s is only a bit more than 14%.

 

To stay with the grocery store comparison, the price of an average chicken is now over $2 more expensive than it was in February 2020. The price of a loaf of white bread is $0.50 more expensive. A pound of ground beef is over $1.50 more expensive.